The company's 25.25% year-over-year revenue contraction and -2.84% operating margin indicate that current pricing power is insufficient to cover fixed overhead costs.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 33.54M | 44.86M | 51.43M | 49.85M | 34.14M |
| Revenue Growth % | -25.25% | -12.76% | 3.16% | 46.01% | - |
| Cost of Goods Sold | 27.62M | 33.46M | 40.53M | 39.57M | 27.01M |
| COGS % of Revenue | 82.35% | 74.58% | 78.82% | 79.37% | 79.1% |
| Gross Profit | 5.92M | 11.41M | 10.89M | 10.29M | 7.13M |
| Gross Margin % | 17.65% | 25.42% | 21.18% | 20.63% | 20.9% |
| Gross Profit Growth % | -48.1% | 4.68% | 5.93% | 44.16% | - |
| Operating Expenses | 6.87M | 10.95M | 7.02M | 6.46M | 4.73M |
| OpEx % of Revenue | 20.5% | 24.41% | 13.66% | 12.96% | 13.85% |
| Selling, General & Admin | 5.47M | 9.38M | 4.51M | 4.06M | 3.72M |
| SG&A % of Revenue | 16.31% | 20.9% | 8.76% | 8.14% | 10.9% |
| Research & Development | 1.45M | 1.38M | 1.36M | 1.55M | 1.01M |
| R&D % of Revenue | 4.33% | 3.08% | 2.65% | 3.11% | 2.95% |
| Other Operating Expenses | -49.62K | 189.38K | 1.15M | 857.63K | 0 |
| Operating Income | -953.63K | 455.91K | 3.87M | 3.82M | 2.41M |
| Operating Margin % | -2.84% | 1.02% | 7.53% | 7.67% | 7.05% |
| Operating Income Growth % | -309.17% | -88.22% | 1.27% | 58.77% | - |
| EBITDA | -351.77K | 936.52K | 4.34M | 4.26M | 2.89M |
| EBITDA Margin % | -1.05% | 2.09% | 8.44% | 8.54% | 8.45% |
| EBITDA Growth % | -137.56% | -78.43% | 2% | 47.46% | - |
| D&A (Non-Cash Add-back) | 601.86K | 480.61K | 470.12K | 433.38K | 478.57K |
| EBIT | 1.51M | 459.36K | 3.89M | 3.91M | 6.44M |
| Net Interest Income | -520.92K | -556.16K | -406.69K | -339.16K | -294.62K |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 520.92K | 556.16K | 406.69K | 339.16K | 294.62K |
| Other Income/Expense | 1.94M | -552.7K | -391.46K | -253.5K | 3.74M |
| Pretax Income | 991.22K | -96.8K | 3.48M | 3.57M | 6.14M |
| Pretax Margin % | 2.96% | -0.22% | 6.77% | 7.16% | 18% |
| Income Tax | 434.39K | 264.22K | 446.9K | 501.57K | 1.2M |
| Effective Tax Rate % | 43.82% | -272.97% | 12.84% | 14.05% | 19.59% |
| Net Income | 556.83K | -361.02K | 3.03M | 3.07M | 4.94M |
| Net Margin % | 1.66% | -0.8% | 5.9% | 6.15% | 14.47% |
| Net Income Growth % | 254.24% | -111.9% | -1.13% | -37.92% | - |
| Net Income (Continuing) | 556.83K | -361.02K | 3.03M | 3.07M | 4.94M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | -0.02 | 0.13 | 0.14 | 0.22 |
| EPS Growth % | 100% | -112.31% | -7.14% | -36.36% | - |
| EPS (Basic) | 0.00 | -0.02 | 0.13 | 0.14 | 0.22 |
| Diluted Shares Outstanding | 0 | 22.5M | 22.5M | 22.5M | 22.5M |
| Basic Shares Outstanding | 0 | 22.5M | 22.5M | 22.5M | 22.5M |
| Dividend Payout Ratio | - | - | 20.8% | - | 6.19% |
Cyclical demand and margin compression
As reported in recent financial disclosures, Luda Technology Group Limited experienced a significant 25.25% year-over-year revenue decline, which suggests that the company's niche manufacturing and trading model is struggling to maintain volume amidst a broader downturn in global industrial capital expenditure cycles and maritime construction demand.
The sharp revenue drop indicates that LUD's dual-model of flange manufacturing and steel trading is highly sensitive to cyclical volatility. Investors should monitor whether this contraction reflects a permanent loss of market share to larger competitors or merely a temporary pause in project-based procurement cycles.
Based on the company's reported figures, the 17.65% gross margin highlights the commodity-sensitive nature of LUD's steel component business, where the firm acts as a price taker and lacks the pricing power necessary to offset rising raw material costs or declining finished product demand.
The current margin profile suggests that LUD's manufacturing segment is unable to command a premium, likely due to the standardized nature of its stainless steel fittings. Without a shift toward higher-specification alloy products, the company remains vulnerable to the spread between raw steel scrap prices and finished goods pricing.
According to the provided financial snapshot, LUD's net margin of 1.66% exceeds its negative operating margin of -2.84%, which indicates that headline profitability is currently being supported by non-operating income rather than the core manufacturing and trading activities of the business.
This discrepancy warrants further investigation into the sustainability of these non-operating gains, such as interest income or government subsidies. The reliance on non-core items to achieve a positive bottom line suggests that the underlying business is currently failing to cover its fixed operating expenses.
As indicated by the negative operating margin of -2.84%, LUD's current cost structure appears misaligned with its reduced revenue base, suggesting that fixed overhead and administrative expenses are not being adequately scaled to match the recent 25.25% contraction in top-line performance.
The company's inability to maintain positive operating income implies a lack of expense discipline or an inability to rapidly adjust capacity utilization in response to market shifts. Management must demonstrate an ability to rationalize the cost base to prevent further erosion of the company's cash reserves.
Quick answers to the most common questions about buying LUD stock.
For fiscal year 2025, Luda Technology Group Limited (LUD) reported total revenue of $33.5M. This represents a 1.8% decline compared to $34.1M in 2021.
Luda Technology Group Limited (LUD) is profitable, generating $0.6M in net income for the fiscal year ending 2025 with a net profit margin of 1.7%.
Luda Technology Group Limited (LUD) reported an operating income of $-1.0M, resulting in an operating profit margin of -2.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Luda Technology Group Limited (LUD) generated $5.9M in gross profit for the year, representing a gross profit margin of 17.7%. This demonstrates the company's core pricing power and production efficiency.